The automotive sector is one of Hungary's core industries and contributes 20 per cent of total exports. In 2007, vehicle sales outside Hungary were worth EUR 8.2 billion and engines accounted for EUR 5.3 billion. Over 600  companies employing a total of 100,000 people are active in the sector. Of these enterprises, 240 operate according to the ISO and/or TS 16949 quality management standards. The export ratio of Hungarian made cars is 94 per cent, a figure that stands at 88 per cent for engine and component production.

 

The number of first- and second-tier equipment manufacturers is continually rising. Since the early 1990s, several foreign car manufacturers, such as Suzuki, Audi and General Motors, as well as 14 of the top 20 Tier 1 suppliers, have set up production facilities in Hungary.

 

 

 

 

Five key arguments to invest in the Hungarian automotive sector

• Tradition of innovation
• Access to a talented, creative, flexible and qualified labour pool at competitive costs
• Central location - a possible hub for Europe
• Excellent local supplier network
• Major automotive suppliers in Hungary

 

Tradition of innovation

• the Hungarian automotive industry celebrated its centennial in 2006
• Major Hungarian scientific and technical contributions include:
• electrical engine (1828) - Dr. Ányos Jedlik
• carburettor (1890)  -  János Csonka and Donát Bánki
• NASA's Moon Rover and Mars vehicles (1961–1988) -  Ferenc Pavlics
• BMW diesel engine development (1981–1999) - Ferenc Anisits
• safety concept of vehicles (1939-1972) - Béla Barényi
• combined engine charger system (1968) - Gyula Cser
• organizer of Ford-T's mass production (1905-15) - József Galamb

 

Access to a talented, creative, flexible and qualified labour pool at competitive costs

 

• 100,000 employees in the automotive industry
• World-class training and education of engineers in major cities
• Over 50% are mechanical engineers, 11% information-systems engineers, 10% electrical engineers, 9% automotive engineers and 39 % quality-assurance engineers and chemical engineers
• Nearly 20% of engineers are engaged in product-improvement, while the rest are active in technological development, production, quality assurance and sales
• Essentially lower  wages compared to Western Europe combined with the highest productivity rates in the region.

 

Click here and learn more about the Hungarian labour market…

Universities in Hungary educating engineers

 

 

Over 48 thousand technical  students in Higher Education

• More than 3,000 of them taking motor vehicle, ship and aircraft studies
• Budapest is the centre of technical education with over 23,000 students

 

Source: Statistical Yearbook of Education 2007/2008

 

 

Central location - an optional hub for Europe

 

• Hungary is a potential logistics and production base thanks to its favourable geographical position in Europe
• Direct access to the Balkans and Eastern Europe
• Renault and Porsche have chosen Hungary for their part centres from which they can supply not only the Central and Eastern European markets but countries further to the East and South including the Ukraine, Russia and  the Balkan region.
• Four Helsinki-corridors running through the country

 

          Click here and learn more about Infrastructure & transportation…

 

Excellent local supplier network

 

• Hungary - as one of the “Detroit East” countries - can supply manufacturers and customers in the whole of Europe
• The number of orders are on an increasing scale due to heavy investments by CBU manufacturers to expand capacities
• Click to contact ITD Hungary’s subcontractor advisers

 

Click here to see a selected list of Hungarian automotive suppliers.

 

 

Major automotive suppliers in Hungary

• Prior to the global crisis manufacturers, such as Suzuki and Audi were steadily expanding capacities and workforce to meet growing demand
• 14 of the world’s top 20 TIER-1s have already established operations in Hungary
• Several multinationals have set up R&D centres in Hungary including Audi, Bosch, Knorr-Bremse, Magna-Steyr, ThyssenKrupp, Arvin Meritor, Denso, Continental, Visteon, WET, Draxlmaier, Edag,Temic Telefunken, DENSO and ZF.
• In 2007/2008 two of the top awards presented by the Minister of National Development and Economy to most outstanding foreign investors was received by Daimler AG for its new investment in Kecskemét.

 

Recent investments

Daimler has decided to assemble its A and B class Mercedes Benz cars in Kecskemét, Central Hungary. The 800 million investment will create 2,500 jobs and production is to start in 2012. The Hungarian Government supports the investment of Daimler with a package of measures giving the project a clear prioritization.

 

Bosch Budapest Development Centre has been expanded by 120 new engineers in 2008.  Research activities in Budapest have started in 1999 with a few engineers, and by now already 430 engineers work in the development centre. Bosch has spent 36 million EUR on R&D in Hungary last year, which means a one and a half growth within one year. The company is cooperating with several education institutes like the Budapest Technical College with whom the development of an intelligent small car is underway.

 

 

 

Spanish Grupo F.Segura has chosen the city of Szolnok to establish a new facility to design and manufacture metal components for the automotive industry. Initially the factory will be 11,000 sqm large, over a total area of 10 hectares. The overall cost of investment will reach EUR 11 million.

From this privileged position in the centre of Europe and bordering on seven countries, F.Segura Hungaria KFT wants to obtain a major presence in the current and future European context. With this strategic decision F.Segura establishes itself in a multi-customer environment where privileged logistics conditions and additional benefits take profit of the new emergence markets in the region.

 

 

Knorr-Bremse Brake Systems Kft. announced that it will invest more than EUR 10 million in a research and development (R&D) project in Hungary which will employ 60 engineers.

The Knorr-Bremse Group is the world's leading manufacturer of braking systems for rail and commercial vehicles. The Hungarian branch has the most employees among the European factories. Knorr Bremse has established its development centre in 1999 in Hungary.

 

The GEDIA Group - GEDIA Gebrüder Dingerkus GmbH develops and manufactures pressings and welded assemblies for the automotive industry, technical products and fastening systems for the household goods industry. The company announced that it will create 103 new jobs and an investment of EUR 21 million in Tata, Hungary to manufacture body parts for the vehicle industry.

 

Audi Hungaria has long been a significant automotive company in Hungary and it is one of the largest exporters. In the last 15 years more than fifteen million engines have been manufactured. Audi TT sportcars and Audi A3 Cabriolets are only assembled in Gyor.

AUDI HUNGARIA MOTOR Kft. has closed a successful year in 2008, too. Last year more than  1.900.333 engines have been manufactured in Gyor. As for vehicle assembly, production volume has grown by 6% last year, alltogether 60 thousand cars have been assembled. The Hungarian branch has invested EUR 309 million in 2008.

 

If you wish to learn more about investment opportunities in the Hungarian automotive sector, please send us a query by clicking .

We shall be pleased to provide you with comprehensive information including

• Production & sales statistics
• Automotive directory
• Wages in the industry
• Clusters, associations, corporate research centres, centres of excellence
• Relevant secondary and tertiary education statistics
• Site locations in Hungary where you can make your own success story.

 

Further information:  

 

H-1061 Budapest, Andrássy út 12.

Phone: (+36 1) 472 8100

Fax: (+36 1) 473 8201

General information:

General support for investment projects:

Automotive sector specialist:  Ms. Dóra Dweik , (+361)472-8188

in ITD Hungary's latest publications is available on this site

Selected suppliers of the automotive industry

 

Page last updated: April 2009